Calculate the Present Value of an Investment That Will Be

question 41

Short Answer

Calculate the present value of an investment that will be worth $1,000 after 6 years at 4% per year compounded annually. Round your answer to the nearest cent.
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​P​ = __________

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Definitions:

Tax Rate

The proportion of income or the value of a transaction that is collected by the government as tax, expressed as a percentage.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue, indicating the company's actual profitability.

Income Statement

A record detailing a firm's income, costs, and gains during a particular timeframe.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's wear and tear, decay, or decline in value.